Binance Starts Operations in Argentina

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By A D

The move comes at a time when Binance is facing regulatory scrutiny in multiple jurisdictions and has lost significant market share due to the end of its zero-fee trading program.

Binance, the world’s largest cryptocurrency exchange by trading volume, has recently expanded its operations to Argentina, enabling its users to transfer Argentine pesos to the platform. Binance’s new service in Argentina is part of its Latin America expansion plan, which aims to provide a bridge between fiat currencies and cryptocurrencies in the region. The company has partnered with the Argentine payment processor Settle Network to allow its users to deposit and withdraw Argentine pesos through the platform.

Binance Argentina announced the commencement of its exchange services in the country through twitter.

Binance’s entry into the Argentine market may not be smooth sailing, given the country’s recent crackdown on cryptocurrency exchanges. In March, Argentina’s Central Bank issued a warning to local banks to scrutinize transactions involving cryptocurrencies, citing the risks of money laundering and terrorism financing. The move followed a similar warning from the Financial Information Unit in 2020.

Moreover, Binance’s global regulatory troubles have been mounting in recent months. The exchange has been banned or restricted in several countries, including the UK, Japan, Germany, Italy, and Thailand. In the US, the Commodity Futures Trading Commission (CFTC) is investigating whether Binance violated rules by allowing US residents to trade derivatives without registering with the agency.

Also Read: The Big Binance Lawsuit

The regulatory scrutiny has taken a toll on Binance’s market share. Binance’s share of the global spot trading market dropped from 45.5% in January to 34.6% in March, a decline of over 10 percentage points. The end of Binance’s zero-fee trading program, which allowed users to trade cryptocurrencies without paying fees, also contributed to the loss of market share.

On top of the regulatory challenges, Binance’s native cryptocurrency, Binance Coin (BNB), has also been affected by the company’s legal and market woes. BNB’s price has dropped by over 15% in the past month, from $440 on March 5 to $372 on April 5.

Binance’s expansion into Argentina is a significant development for the cryptocurrency industry, but it comes at a time of regulatory turmoil and market share losses for the company. The regulatory challenges and the end of the zero-fee trading program have taken a toll on Binance’s reputation and market dominance, and it remains to be seen how the company will navigate these issues in the coming months. As investors and regulators alike scrutinize Binance’s operations, it is clear that the cryptocurrency industry is entering a new phase of regulation and scrutiny, which will require companies to adapt and evolve to stay relevant and compliant.

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